Few life events are quite as financially devastating as divorce. Even the most well-off families often find that divorce leaves both individuals in a financial tailspin once the dust settles. However, you don’t just have to accept that as part of your divorce experience. With careful planning and management of your expectations, you can ease the financial pain of a divorce.
With the right attorney by your side, you can fight for the assets you need to make ends meet after your split. Call Holcomb & Russell at 228-206-5843 to find out how we can help you.
Review Your Budget with a Financial Planner
Before you get too far into your divorce, schedule a meeting with a financial planner. You may even be able to find one that specializes in finances after divorce. An honest, brutal look at your post-split financial situation can help you plan accordingly.
Know What You Need to Leave the Divorce With for a Fresh Start
With the information you get from your financial planner, decide what you want to get from the division of assets. You may want to fight for a rental property that brings in passive monthly income, or perhaps you want a greater share of retirement funds that will protect you in your old age.
If you talk about your goals and fears with your attorney, they can help you decide what your priorities are and what you need to provide for yourself after your split. In some cases, this may mean fighting for spousal support.
Keep Your Expectations Reasonable
Life won’t be the same after divorce. Unless you are in a position where you’ll be very well-off after your split, you’ll likely have to adjust your expectations regarding your standard of living. This doesn’t have to be permanent, of course.
You can likely work your way back up to your previous standard of living with careful budgeting, career growth, and long-term planning. But if you go into single life expecting to have the life you had before, you’re in a prime position to lean on credit cards, payday loans, and other types of debt that are likely to get you into serious trouble.
Spend As If You Are Already Divorced
Whether your divorce process takes months or years, there may be a period of time where you still have access to financial support from your spouse or a brief break from solo bills. Use this time to your advantage by getting used to the financial demands of single life. No matter how much money you have available to you, do your best to follow the same budget you will have once you are legally divorced.
This will show you where there are shortages in your budget, where you’re overspending, and where changes are needed. As an added bonus, doing this may allow you to put more money in savings to protect you should you ever need it.
Start Planning Long-Term
After a divorce, it’s easy to get caught up in the day-to-day financial struggles you face. But don’t forget to plan for the future as well. You’ll want to look ahead to retirement and your investments. If you have already consulted with a financial planner, you can seek further advice regarding retirement planning and other long-term goals.
Support Your Mental Health
This is one of the most important but overlooked parts of protecting your financial wellbeing. When a person’s mental health falters, they are at serious risk of financial trouble. The stress of poor mental health can increase the risk of overspending, lead some to risky investments, or cause others to gamble or shop as a coping mechanism. As you navigate this extremely challenging time, make sure you are being gentle with yourself and meeting your mental health needs.
Get Help with Your Divorce Now—Call Holcomb & Russell
Ready to discuss your divorce and next steps in greater detail? The team at Holcomb & Russell is here and ready to help. Set up your consultation now by calling us at 228-206-5843 or sending us a message on our website.